Shares in sports and gaming digital media company XLMedia PLC (AIM:XLM, OTC:XLMDF) flew 39% higher on Monday in response to a proposed divestment of its last remaining business.
Under the plans, XLMedia has entered into a $30 million deal to sell its North America arm to Switzerland-based sports data business Sportradar, pending approval at a November general meeting.
XLMedia will become a cash shell following the divestment, having already divested its European and Canadian operations.
Management proposed the divestment of its core operations after concluding that “the value of its individual businesses was not being fully reflected in its share price”.
The group’s share price doubled in March when it announced the Europe and Canada divestments and is currently up 76% year to date.
Total revenue and adjusted EBITDA 2023 attributable to the North America business in the last financial year were $27.5 million and $5.5 million respectively.